What is the due date for an LLP's income tax return?
An LLP or firm whose accounts must be audited under the Income-tax Act is generally due on 31 October after the year. Others are due on 31 July. Notified extensions may change the date. We confirm the date applicable to your firm before starting.
Is a tax audit needed for every LLP?
No. A tax audit applies if turnover crosses the 44AB limit, or a statutory audit is needed under the LLP Act (turnover above ₹40 lakh or contribution above ₹25 lakh). The two audits are separate. We tell you which apply on 31 March so the audit is planned in time.
Is partner's share of profit taxable?
The partner's share of the firm's profit is exempt under section 10(2A) in the partner's hands, because the firm has already paid tax. Remuneration and interest received by the partner, within the allowed limits, are taxable as business income of the partner.
Can a firm claim a loss and carry it forward?
Yes. Business losses can be carried forward for eight years if the return is filed by the due date. A change in partners can affect carry-forward only in specified cases. We note any change in the profit-sharing ratio and test the loss position.
What if a partner retired mid-year?
The firm's return reports the retirement date and the retiring partner's share until that date. The partner's capital account settlement can also have capital gains implications. We review the retirement deed and the settlement entries so the books and the return agree.
Why would a partnership convert to an LLP?
LLPs offer limited liability and easier fund-raising. On conversion, the transfer of assets to the LLP can be tax-neutral if conditions in section 47(xiiib) are met, such as continuity of partners and capital. We review conditions before conversion because breaches can trigger capital gains.
Who must get a tax audit done under section 44AB?
Businesses with turnover above ₹1 crore (₹10 crore if cash receipts and payments are each 5% or less of the total) and professionals with gross receipts above ₹50 lakh need an audit. Taxpayers who opt out of presumptive taxation and earn below the basic limit, and some others, also fall in. We check every trigger before the year ends.
What is the due date for the tax audit report?
The audit report in Form 3CA/3CB-3CD is generally due by 30 September after the financial year, and the income tax return of an audit case is due by 31 October. Missing the audit date can attract a penalty under section 271B of 0.5% of turnover, capped at ₹1.5 lakh.
Is a UDIN required on a tax audit report?
Yes. Every tax audit report signed by a practising Chartered Accountant must carry a UDIN (Unique Document Identification Number) generated on the ICAI portal, and the UDIN is quoted when the report is uploaded. The report is signed by the practising CA, not by the platform or office staff that collects the documents.
